JERUSALEM, Dec 18 (Dan Williams/Reuters & JMCC) - Israeli officials said they would press on with plans this week to build 6,000 homes for settlers on land claimed by Palestinians, defying criticism from Western powers who fear the move will hit already faint hopes for a peace accord.

Stung by the de facto recognition of Palestinian sovereignty in a U.N. General Assembly vote last month, Israel announced it would expand settlements in the occupied West Bank and East Jerusalem.

An Israeli interior ministry planning committee on Monday gave preliminary approval for 1,500 new homes in the Ramat Shlomo settlement.

The panel will now start discussing plans for another 4,500 homes in two other settlements, Givat Hamatos and Gilo, in back-to-back sessions that could run into next week, ministry spokesman Efrat Orbach said on Tuesday.

Israel counts the three settlements as part of its Jerusalem municipality though they are on West Bank land seized in the 1967 Middle East war.

Palestinians see the settlements as obstacles to achieving a viable state with a capital in East Jerusalem and under international law it is illegal to settle in occupied territory. The Gaza Strip and West Bank, including eastern Jerusalem, were occupied by Israel in 1967.

Settlement activity is unilateral and is completely adverse to the continued viability of a two-state solution and the possibility for our people to continue to exist. It's an attack on our people's right to life, essentially, Palestinian Prime Minister Salam Fayyad told Reuters on Monday.

NETANYAHU DEPUTY DEFENDS

Most countries deem the settlements illegal and Western powers have been especially troubled by Israel's declared intent to build in E-1, a wedge of land between East Jerusalem and the West Bank where it had previously held off under U.S. pressure.

Israeli Vice Prime Minister Moshe Yaalon said the expansion of the Jerusalem-area settlements was a resumption of plans put on hold while Western powers tried to persuade Abbas to abandon the Palestinians' U.N. status upgrade.

We said, 'We won't build, so as not to give Abu Mazen (Abbas) an excuse to go to the U.N. and an excuse not to come to the table,' Yaalon told Army Radio, After he did what he did ... we removed these restrictions from ourselves.

He dismissed the international furor. The world automatically condemns any construction over the Green Line, and then moves on, Yaalon said, referring to the West Bank boundary.

We will continue to build in accordance with the state of Israel's strategic interests, he added.

Critics in Israel have suggested Israeli Prime Minister Benjamin Netanyahu is pandering to the right-wing electorate as he prepares to run for re-election in a Jan. 22 ballot. (Writing by Dan Williams; Additional reporting by Noah Browning; Editing by Maayan Lubell and Andrew Heavens)